The Australian dollar has gained yet more ground against the US dollar after a drop in the local unemployment rate.

At 0630 AEDT on Friday, the local currency was worth 78.62 US cents, up from 78.45 on Thursday.

The Australian dollar continued to benefit from Thursday’s data that showed unemployment falling to its lowest level in more than three years in September.

The Aussie also hit a 17-month high against the New Zealand dollar after Jacinda Arden surprised the market with her general election win.

BK Asset Management managing director of FX strategy Kathy Lien said the Aussie dollar had benefited from money flowing out of New Zealand, and was one of the few currencies to outperform the greenback.

“The labour market continues to be one of the country’s primary areas of strength,” Lien said.

At 0630 AEDT, it was worth NZ$1.12.

AAP

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